USDT market capitalization declines for the second consecutive month, potentially putting pressure on market recovery

BTC3.53%

Odaily Planet Daily reports that the market capitalization of Tether’s stablecoin USDT has decreased by 0.8% this month to $183.61 billion, continuing a decline of about 1% in January. This marks the first consecutive two-month contraction since the Terra incident in 2022.

Analysis indicates that stablecoins are considered an important liquidity source in the crypto market, and their size changes are often seen as a barometer of capital inflows and outflows. The ongoing decline in USDT’s market cap may reflect market capital outflows, putting some pressure on Bitcoin and the overall market’s continued rebound.

Data shows that Bitcoin’s price, after stabilizing around $60,000 in early February, briefly rebounded above $70,000, but has since fallen back to around $65,000. Meanwhile, USDC’s market cap has recovered from its early-year lows but remains relatively flat for the year overall. (CoinDesk)

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